Perelman said the deal would help API’s presence in the Australian cosmetics market. “This is a strategic acquisition for API that will help them further expand their footprint in the non-surgical aesthetic market,” he said.
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Silk Laser listed on the ASX in 2020 at $3.45 per share, and while the stock hit as high as $5.20 in 2021, it has struggled since then, with shares recently dipping below the $2 mark. The stock hit a high of $3.04 on Thursday.
Wilson Asset Management, one of the group’s largest investors, will back Wesfarmers’ bid unless a better bid emerges.
Wesfarmers and fellow retail giant Woolworths have stepped up their interest in wellness. Woolworths’ healthy living division already sells a range of beauty products and vitamins, and Recently launched a telehealth service Access to doctors, naturopaths and nutritionists.
Wesfarmers boss Rob Scott told investors in the company’s half-year results in February that the Priceline business had delivered good growth in the health and beauty business in the first six months of the year, driven by increased store traffic.
Analysts are optimistic about the opportunities offered by the hair removal and cosmetics market. “[Silk] “Having a very attractive and large addressable market is ideal for long-term and profitable growth,” Shaw and Partners said in a note to clients earlier this year.
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